Payment of invoices

What are the types of invoices

These are key documents when working with foreign companies, regulating the terms of the transaction. The main types are:

Commercial Invoice

This is an official invoice confirming the shipment of goods or provision of services.

• Contents:
  1. Complete details of the seller and buyer (name, address, contacts).
  2. Detailed description of the product (name, quantity, unit price, total amount).
  3. Delivery terms (Incoterms: FOB, CIF, EXW, etc.).
  4. Currency and terms.
  5. Contract number and date.

• Usage:
  1. For customs clearance.
  2. As a basis for a bank transfer.
  3. For tax reporting.

For example, an exporter from Germany issues a commercial invoice for the supply of equipment to Russia, stating the amount in euros. The buyer makes the payment for the invoice via bank using a letter of credit.

Proforma Invoice

This is a preliminary invoice that the seller provides before the shipment of goods.

1. Contents:
   • Estimated amount.
   • Terms of delivery and payment.
   • List of goods without final parameters (weight, exact quantity).
2. Usage:
   • To obtain import licenses.
   • For negotiating terms with the buyer.
   • For visa issuance or opening a letter of credit.

For example, a Chinese supplier sends a proforma invoice to a Russian company for a batch of electronics. The document helps the buyer arrange international credit at the bank.

Other Types of Invoices

• Credit note. Adjusts the amount downward (e.g., in case of returns due to defects).
• Advance. Requests payment of part of the cost before shipment.
• Amortized. Confirms full payment for goods.

How to Issue an Invoice

Issuing an invoice requires attention to detail and adherence to standards, especially for international transactions. The process consists of several steps:

1. Filling in the details of the parties involved.
   • Seller details:
     • Full company name.
     • Legal address and contacts.
     • Tax number (TIN, VAT, etc.).
     • Bank details (BANK, account, SWIFT/BIC).
   • Buyer details:
     • Company name or full name of an individual.
     • Delivery address.
     • Contact information (email, phone).
2. Description.
   • For goods:
     • Name, SKU, quantity.
     • Unit price and total amount.
     • Weight, volume, HS code (for customs).
   • For services:
     • Service name (e.g., “IT consulting”).
     • Completion dates.
     • Hourly rate or fixed amount.
3. Important:
   • Use clear formulations to avoid ambiguity.
   • For foreign shipments, specify the product code according to the Harmonized System (HS).
4. Specify the terms of the transaction.
   • Payment terms:
     • Payment within 10 business days.
     • 50% prepayment before shipment.
   • Currency:
     • USD, EUR, cryptocurrency (USDT, BTC).
   • Delivery terms:
     • Incoterms (FCA, DAP, EXW).
     • Transportation method (air, sea).
5. Choose a payment method.
   • Bank transfer:
     • Provide details (account, SWIFT).
   • Online invoice payment:
     • Via payment systems (PayPal, Stripe).
     • With cryptocurrency.
   • Letter of credit:
     • A secure method for large international transactions.
6. Tip: To speed up payments, use online payments as they reduce the risk of delays.
7. Check and send.
   • Check:
     • The details of both parties.
     • Price match with the contract.
     • Presence of signature and stamp (if required).
   • Send the document:
     • By email in PDF format.
     • Through CRM system or personal account on the platform.

Common mistakes in the process:

• Incorrect HS codes.
• Currency mismatch between the contract and the invoice.
• Lack of payment deadlines.

Process Automation.

Use online generators to:

• Create templates with your company logo in a few clicks.
• Automatically calculate the amount with taxes included.
• Integrate real-time invoice payment rates.

Correctly issued invoice for payment is a guarantee of transaction transparency and protection of both parties’ interests. Use our tools to save time and minimize fees. Optimize your payments with business partners today. Paying through our platform is a smart way to speed up deals without risks. Register to transfer funds without hidden fees and delays. Your business deserves safe and modern solutions.